No abstract

The demand for wine is generally estimated on an aggregate level as a single commodity. However, as recent history shows us, the demand for wine not only varies considerably by varietal, but also by price point within each varietal. As a result, although estimates of the demand for wine may be benefi cial to the wine industry as a whole, they provide little benefi t to individual wine producers. Using scan data of purchases from US retail chain stores, this paper uses store keeping unit (sku) level data to overcome the limitations of prior research on the demand for wine by providing estimates for the demand for wine by varietal and price point. We also provide estimates of own price effects, income effects as well as cross price effects by color, varietal and price point. Problems of endogeneity inherent in demand estimation are corrected by utilizing a novel instrumental variable technique using grape prices as the instrument. (JEL Classifi cation: C23, D12)

This study investigates the ability of winery tasting rooms to create brand awareness and build long-term brand loyalty. Specifically, we test the conjecture that if tasting rooms create brand awareness and a pleasurable tasting room experience, then those visitors are more likely to recognize and seek out those brands once they leave the tasting room.

This paper examines the effect of the movie Sideways on US wine consumption. Specifically, we examine the affects of the movie on the consumption of Merlot, which is derided in the movie and the affect on Pinot Noir, which is praised. We examine the trends in consumption before and after the movie and perform statistical tests for structural changes in consumption. We also test for changes in consumption of each varietal by price point. (JEL Classification: C22)

PurposeSpanish wine sales have grown quite rapidly in the US market during the past few years. The purpose of this paper is to examine this trend, discuss potential reasons, and identify opportunities for maintaining and increasing Spanish wine sales in the US market.Design/methodology/approachThe objectives are achieved by analyzing ACNielsen scan data from 2002 to 2005 and other secondary data on US wine consumers and trends.FindingsThe results indicate that Americans perceive red Spanish wine quite positively and are moving up in price point expenditures. However, sales of Spanish white wines remain rather fixed at specific price points. In addition, Spanish wine is losing market share to other imported wines, except for certain price points, but is performing well against US wines.Practical implicationsThis paper suggests ten opportunities for maintaining and/or increasing Spanish wine sales in the US market. Many of these suggestions are also useful for other countries desiring to export wine to the US.Originality/valueThis paper is one of the first of its kind to provide an in‐depth analysis of ACNielsen Scan data on Spanish wines sales in the USA. In addition, it provides extensive information on the US wine market, trends, and new market segments such as the Millennial and Hispanic markets.